AutoBeta(AutoBeta.net)09/07 Report--

GAC GROUP released his report card on August sales on September 6th. Data show that GAC GROUP sold 148200 vehicles in August 2024, down 24.69 percent from the same period last year, of which 37600 new energy vehicles were sold, down 24.14 percent from the same period last year. It is understood that this is GAC GROUP's eighth month of sales decline compared with the same period last year, that is, since 2024. By the end of August, GAC GROUP's cumulative sales in the first eight months of this year were 1.1524 million, down 25.68 percent from the same period last year, of which sales of new energy vehicles were 235500, down 29.88 percent from the same period last year.

Subdivided into GAC GROUP's brands, all GAC GROUP's brands declined in August. Among the joint venture brands, GAC Honda sold 32800 vehicles, down 22.68% from the same period last year, and its cumulative sales for the year were 274000, down 26.81% from the same period last year. GAC Toyota's performance was not optimistic, with sales of 56000 vehicles in August, down 20.68% from the same period last year, and 445600 vehicles during the year, down 24.91% from the same period last year.

Among independent brands, as GAC GROUP's new energy brand, GAC Ean New Energy sold 31800 vehicles in August, down 29.44% from a year earlier, its seventh consecutive month of decline. Stretching the time to the previous August, GAC Ean New Energy sales totaled 186400 vehicles, down 37.74% from the same period last year, and the decline was particularly significant. It was the brand under GAC GROUP's biggest decline.

According to the plan, the annual sales target of GAC is 700000 vehicles, and the target completion rate in the first eight months is only 26.63%. It is almost impossible for GAC to achieve the target within the next four months. In the past few years, relying on low-cost models, GAC Ean has occupied almost half of the ride-hailing market. AION S and AION Y have brought huge growth to GAC Ean, but now it is a different story. "Automotive Industry concern" believes that the decline in GAC Ean sales may be related to its market. At present, the online car-hailing market has gradually saturated, and the inner volume of the "price war" has also made GAC Ean lose its price advantage. in the case of sluggish sales, there are all kinds of adverse news such as layoffs and termination of contracts with new students.

In addition to the above brands, GAC MOTOR sold 27500 vehicles in August, down 26.75 per cent from a year earlier, while cumulative sales in the previous eight months were 242200, down 6.36 per cent from a year earlier. GAC Hino and Hechuang, which was classified as "other" by GAC GROUP, sold only 49 cars in August, down 95.47% from a year earlier, while cumulative sales in the previous eight months were 4188, down 83.11% from a year earlier.

At the end of July this year, GAC MOTOR officially changed its name to GAC MOTOR, and its models for sale include sedan Shadow Leopard, SUV GS4, GS3 Shadow Speed, GS8, Yingku, MPV M8 and M6. In response to the name change, people in the industry said at that time that changing the name of GAC MOTOR to GAC MOTOR would further highlight the important position of independent brands in GAC GROUP, thereby enhancing the corporate image and awareness of the brand.

From January to August this year, Guangzhou Auto Toyota and Guangzhou Auto Honda accounted for 62.45% of GAC GROUP's total sales, while GAC Ean and GAC MOTOR accounted for only 37.19% of total sales, according to Automotive Industry concern. In other words, at present, GAC GROUP's main source of sales still depends on joint venture brands. It should be noted that with the rapid rise of domestic independent brands and the listing of more new energy vehicles, the market share of joint venture brands in the car market is gradually divided, especially the fuel vehicle market is gradually being eroded by the new energy vehicle market. Taking the data released by the Federation of passengers in July this year as an example, the cumulative market share of domestic independent brands in July was 57.2%, while that of mainstream joint venture brands was only 29.4%, of which Japanese brands had only 14.6% of the market share in China.

Judging from GAC GROUP's overall sales in August, the share of both joint ventures in the group has shrunk, whether it is Guangzhou Auto Toyota or Guangzhou Automobile Honda. Of course, this situation is not alone, including Changan Ford and Changan Mazda, which belong to Changan Automobile Group, SAIC Volkswagen and SAIC GM, and Dongfeng Nissan, Dongfeng Honda and Shenlong Automobile, which belong to Dongfeng Automobile Group.

GAC GROUP has said that this year, the share of joint venture brands will further decline, and the market share of independent brands will further increase, standing firm at more than 50 per cent, and becoming market dominant. In addition, with regard to the group's sales forecast, Zeng Qinghong, chairman of GAC GROUP, said GAC GROUP will strive to achieve the goal of 10 per cent sales growth this year and strive to achieve its own brand sales of more than 1 million vehicles. But at present, Toyota Honda sales in the GAC GROUP joint venture sector have declined, and the performance of the new energy vehicle sector is hardly ideal, especially GAC Ean, whose sales have plummeted since 2024, and the overall sales performance is still under pressure.

The decline in sales also directly affected GAC GROUP's operating income. According to the latest financial report, GAC GROUP's operating income in the first half of the year was 45.808 billion yuan, down 25.62% from the same period last year; the net profit belonging to shareholders of listed companies was 1.516 billion yuan, down 48.88% from the same period last year; the net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was-338 million yuan, down 112.51% from the same period last year.

It is undeniable that today's independent brands have gradually become the goal for global car companies to catch up, and under the general trend of the rise of independent brands and the transformation of new energy, "how to turn around and stop the decline in sales" is a subject that GAC GROUP urgently needs to make up for.

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